Read our latest blog about buying a house and get all your questions answered!

The realtors at The HIVE have experience helping people buy homes throughout the Twin Cities and surrounding communities. 

If you have additional questions, or are ready to start the journey of finding your perfect home, contact us today.

1. What is the process of buying a home?

2. Why is getting pre-approved for a loan important before touring houses?

3. How do we start searching for a house to buy?

4. When can we tour houses?

5. Why is it important to hire a trusted realtor?

6. How do we write an offer to buy a house?

7. What happens once our offer is accepted?

8. What costs are associated with buying a house?

1. What is the process of buying a home?

  1. Contact a lender to start the mortgage pre-approval process.
  2. Your realtor will create a custom search on the Multiple Listing Service (MLS) platform which provides accurate information about the houses for sale that fit your criteria.
  3. Start touring houses for sale with your realtor.
  4. Once you've found the perfect house, you'll work with your realtor to write an offer.
  5. Upon offer acceptance, you'll schedule a home inspection and continue the mortgage approval process with your lender.
  6. You will take a final walk through the house prior to closing to ensure the house is in the same condition.
  7. On closing day, you'll sign documents at a title company and receive the keys to your new house!

2. Why is getting pre-approved for a loan important before touring houses?

Getting a pre-approval from a lender is the foundation of the entire process to buy a house.

  • It helps you know what you can afford before starting to tour houses.
  • It saves you time and energy.
  • It gives you the opportunity to find the best program for your needs.

3. How do we start searching for a house to buy?

Your realtor will set up a search on the MLS that fits your criteria for a house. The biggest factors are location, price range, and bed, bath & garage counts.

  • Location Considerations
    • Long term plans
    • Proximity to lifestyle and family favorite activities
    • Schools
    • Distance to jobs, family and friends
  • Price Range
    • Determine the range that works best for your situation.
    • The maximum price a lender approves you for, may not necessarily be how much you can afford to spend.
    • Set a monthly mortgage budget and decide a range you will be comfortable with each month.
  • Bed, Bath & Garage Counts
    • The MLS has data fields to fit your needs. Is an attached garage a "must-have"?
    • The search is interactive and helps your realtor know the homes that you want to tour.

4. When can we tour houses?

Whenever you're ready and have been pre-approved with a trusted lender!

  • Communicate with your realtor - make sure they know the homes you want to see and your preferred schedule.
  • Consider setting aside time to tour houses for sale ahead of time. House hunting can be time consuming.
  • Buyers with flexible schedules tend to see faster success.
  • Be prepared to take notes and observe the things you like or dislike.
  • Be honest with your feedback.

5. Why is it important to hire a trusted realtor?

Hiring a trusted realtor is important because buying a house is likely one of the largest purchases you will make in your entire life. It is important to find a realtor you enjoy spending time with and can have open and honest communication. Here are some characteristics you will find valuable in a realtor: 

  • Knowledgable about the current real estate market
  • Trustworthy
  • Dependable
  • Flexible
  • Strong Work Ethic
  • Attention to Detail
  • Excellent Negotiation Skills

Hiring a realtor within a large brokerage, such as Coldwell Banker Realty, can also be a quality asset. Coldwell Banker Realty is one of the top-performing brokerages in the Twin Cities, currently ranked #1 in Ramsey and Hennepin County for leading brokerage by total sales volume for 2022.

6. How do we write an offer to buy a house?

Almost everything is done electronically! You will work with your realtor to create a competitive offer using the following:

  1. Get a pre-approval letter from your lender. Your realtor will submit this with your offer to show you are qualified for the loan.
  2. Decide on your purchase price.
  3. Set a closing date - Typically within about 30-45 days.
  4. Earnest Money - An amount of money, similar to a deposit, offered to show your dedication to purchasing the house. This is typically 1%-2% of the purchase price and will show as a credit to you on closing day.
  5. Home Inspection - Is the purchase contingent on inspection? How many days would you like for the inspection period? A typical inspection period is 5-10 calendar days. Read our Top 6 Reasons to Get a Home Inspection.

7. What happens once our offer is accepted? 

This is called the escrow period. Here is what you can expect between offer acceptance and closing day:

  1. Your loan goes through underwriting and is finalized.
  2. The lender orders an appraisal to determine the value of the house.
  3. The title company will examine the house's title to ensure it is clear for your ownership.
  4. You will take a final walk through the house prior to closing.

8. What costs are associated with buying a house?

  • Earnest Money - An amount of money, similar to a deposit, offered to show your dedication to purchasing the house. This is typically 1%-2% of the purchase price and will show as a credit to you on closing day.
  • Closing Costs - Fees due for services such as title commitments and mortgage origination, typically 2-3% of the purchase price.
  • Down Payment - Down payments can be as low as 3% for a conventional loan or 3.5% for a FHA loan.

Let us know if you have any questions about buying a home.

One of our experienced realtors will be in touch as soon as possible. 

We can start the process today!